Wisconsin Administrative Code
Department of Natural Resources
NR 400-499 - Environmental Protection - Air Pollution Control
Chapter NR 408 - Construction Permits For Direct Major Sources In Nonattainment Areas
Section NR 408.11 - Plant-wide applicability limitations (PALs)

Universal Citation: WI Admin Code ยง NR 408.11

Current through August 26, 2024

(1) APPLICABILITY.

(a) This section applies to any existing major stationary source which wishes to operate under a PAL. The department may approve the use of a PAL for any existing major stationary source if the source and its application for a PAL meets all of the requirements in this section.

(b) The department may not allow a PAL for VOC or NOX for any major stationary source located in an extreme ozone nonattainment area.

(c) Any physical change in or change in the method of operation of a major stationary source that maintains its total source-wide emissions below the PAL level, meets the requirements in this section, and complies with the PAL permit:
1. Is not a major modification for the PAL regulated air contaminant.

2. Does not have to be approved under this chapter.

3. Is not subject to the provisions in s. NR 408.10(4).

(d) Except as provided under par. (c) 3., a major stationary source shall continue to comply with all applicable federal or state requirements, emission limitations and work practice requirements that were established prior to the effective date of the PAL.

(2) DEFINITIONS. The following definitions apply to terms used in this subsection for the purpose of developing and implementing PALs consistent with this section.

(a) "Allowable emissions" has the meaning given in s. NR 408.02(2), except as this definition is modified according to both of the following:
1. The allowable emissions for any emissions unit shall be calculated considering any emission limitations that are enforceable as a practical matter on the emissions unit's potential to emit.

2. An emissions unit's potential to emit shall be determined using the definition in s. NR 408.02(28), except that the words "or enforceable as a practical matter" should be added after "federally enforceable".

(b) "Major emissions unit" means either of the following:
1. Any emissions unit that emits or has the potential to emit 100 tons per year or more of the PAL regulated air contaminant in an attainment area.

2. Any emissions unit that emits or has the potential to emit the PAL regulated air contaminant in an amount that is equal to or greater than the major source threshold for the PAL regulated air contaminant as defined by the Act for nonattainment areas.

Note: In accordance with the definition of major stationary source in section 182 (c) of the Act, an emissions unit would be a major emissions unit for VOC if the emissions unit is located in a serious ozone nonattainment area and it emits or has the potential to emit 50 or more tons of VOC per year.

(c) "PAL effective date" means the date of issuance of the PAL permit except that, in the case of an increased PAL, "PAL effective date" means the date any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL regulated air contaminant.

(d) "PAL effective period" means the period beginning with the PAL effective date and ending 10 years later.

(e) "PAL major modification" means, notwithstanding s. NR 408.02(20) and (23), any physical change in, or change in the method of operation of the PAL source that causes it to emit the PAL regulated air contaminant at a level equal to or greater than the PAL.

(f) "PAL permit" means the construction permit issued by the department that establishes a PAL for a major stationary source.

(g) "PAL regulated air contaminant" means the regulated NSR air contaminant for which a PAL is established at a major stationary source.

(h) "Significant emissions unit" means an emissions unit that emits or has the potential to emit a PAL regulated air contaminant in an amount that is equal to or greater than the significant level, as defined in s. NR 408.02(32) or in the Act, whichever is lower, for that PAL regulated air contaminant, but less than the amount that would qualify the unit as a major emissions unit.

(i) "Small emissions unit" means an emissions unit that emits or has the potential to emit the PAL regulated air contaminant in an amount less than the significant level for that PAL regulated air contaminant, as defined in s. NR 408.02(32) or in the Act, whichever is lower.

(3) PERMIT APPLICATION REQUIREMENTS. As part of a permit application requesting a PAL, the owner or operator of a major stationary source shall submit all of the following information to the department for approval:

(a) A list of all emissions units at the source designated as small, significant or major based on their potential to emit. In addition, the owner or operator of the source shall indicate which, if any, federal or state applicable requirements, emission limitations or work practices apply to each unit.

(b) Calculations of the baseline actual emissions with supporting documentation. Baseline actual emissions shall include emissions associated not only with operation of the unit, but also emissions associated with startup, shutdown and malfunction.

(c) The calculation procedures that the major stationary source owner or operator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by sub. (13) (a).

(4) GENERAL REQUIREMENTS FOR ESTABLISHING PALS.

(a) The department may establish a PAL at a major stationary source if all of the following requirements are met:
1. The PAL imposes an annual emission limitation in tons per year, that is enforceable as a practical matter, for the entire major stationary source. For each month during the PAL effective period after the first 12 months of establishing a PAL, the major stationary source owner or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous 12 consecutive months is less than the PAL. For each month during the first 11 months from the PAL effective date, the major stationary source owner or operator shall show that the sum of the preceding monthly emissions from the PAL effective date for each emissions unit under the PAL is less than the PAL.

2. The PAL is established in a PAL permit that meets the public participation requirements in sub. (5).

3. The PAL permit contains all the requirements of sub. (7).

4. The PAL includes fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL regulated air contaminant at the major stationary source.

5. The PAL shall regulate emissions of only one air contaminant.

6. The PAL has a PAL effective period of 10 years.

7. The owner or operator of the major stationary source with a PAL complies with the monitoring, recordkeeping and reporting requirements provided in subs. (12) to (14) for each emissions unit under the PAL through the PAL effective period.

8. The department determines that the requirements of s. 285.63, Stats., and, if applicable, s. 285.64, Stats.,are met.

(b) At no time during or after the PAL effective period are emissions reductions of a PAL regulated air contaminant that occur during the PAL effective period creditable as decreases for purposes of offsets under s. NR 408.06 unless the PAL is reduced by the amount of the emissions reductions and the reductions would be creditable in the absence of the PAL.

(5) PUBLIC PARTICIPATION REQUIREMENTS FOR PALS. PALs shall be established, renewed or increased through a procedure that is consistent with s. NR 408.09. This includes the requirement that the department provide the public with notice of the proposed approval of a PAL permit and at least a 30-day period for submittal of public comment. The department shall address all material comments before taking final action on the permit.

(6) SETTING THE 10-YEAR PAL LEVEL.

(a) The PAL level shall be established as the sum of the baseline actual emissions, as defined in s. NR 408.02(2m), of the PAL regulated air contaminant for each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL regulated air contaminant under s. NR 408.02(32) or under the Act, whichever is lower.

(b) When establishing the PAL level, for a PAL regulated air contaminant, only one consecutive 24-month period may be used to determine the baseline actual emissions for all existing emissions units.

(c) A different consecutive 24-month period may be used for each different PAL regulated air contaminant.

(d) Emissions associated with units that were permanently shut down after the 24-month period established under par. (b) shall be subtracted from the PAL level.

(e) For newly constructed units, which do not include modifications to existing units, on which actual construction began after the 24-month period, in lieu of adding the baseline actual emissions established under par. (b), the emissions shall be added to the PAL level in an amount equal to the potential to emit of the units.

(f) The department shall specify a reduced PAL level in the PAL permit to become effective on the future compliance date of any applicable federal or state regulatory requirements that the department is aware of prior to issuance of the PAL permit.

Note: If the source owner or operator will be required to reduce emissions from industrial boilers in half from baseline emissions of 60 ppm NOX to a new rule limit of 30 ppm, the permit shall contain a future effective PAL level that is equal to the current PAL level reduced by half of the original baseline emissions of the unit.

(7) CONTENTS OF THE PAL PERMIT. The PAL permit shall contain all of the following information:

(a) The PAL regulated air contaminant and the corresponding plant-wide emission limitation in tons per year.

(b) The PAL effective date and the expiration date of the PAL.

(c) A specification that if the owner or operator applies to renew a PAL in accordance with sub. (10) before the end of the PAL effective period, the PAL does not expire at the end of the PAL effective period, but shall remain in effect until a revised PAL permit is issued by the department.

(d) A requirement that emission calculations for compliance purposes include emissions from startups, shutdowns and malfunctions.

(e) A requirement that, once the PAL expires, the major stationary source is subject to the requirements of sub. (9).

(f) The calculation procedures that the owner or operator shall use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by sub. (13) (a).

(g) A requirement that the owner or operator monitor all emissions units in accordance with the provisions under sub. (12).

(h) A requirement to retain the records required under sub. (13) on site. Records may be retained in an electronic format.

(i) A requirement to submit the reports required under sub. (14) by the required deadlines.

(j) Any other requirements that the department deems necessary to implement and enforce the PAL.

(8) PAL EFFECTIVE PERIOD AND REOPENING OF THE PAL PERMIT.

(a) PAL effective period. The department shall specify a PAL effective period of 10 years.

(b) Reopening of the PAL permit.
1. During the PAL effective period, the department shall reopen and revise the PAL permit to do any of the following:
a. Correct typographical errors in the PAL permit or correct calculation errors made in setting the PAL or reflect a more accurate determination of emissions used to establish the PAL.

b. Reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under this chapter.

c. Revise the PAL to reflect an increase in the PAL as provided under sub. (11).

2. The department may reopen and revise the PAL permit to do any of the following:
a. Reduce the PAL to reflect newly applicable federal requirements with compliance dates after the PAL effective date.

b. Reduce the PAL consistent with any other requirement that is enforceable as a practical matter, and that the department may impose on the major stationary source.

c. Reduce the PAL if the department determines that a reduction is necessary to avoid causing or contributing to a violation of an NAAQS or a PSD increment violation, or to an adverse impact on an AQRV that has been identified for a federal class I area by a federal land manager and for which information is available to the general public.

3. Except for the permit reopening in subd. 1. a. for the correction of typographical or calculation errors that do not increase the PAL level, all reopenings shall be carried out in accordance with the public participation requirements of sub. (5).

(9) EXPIRATION OF A PAL. Any PAL that is not renewed in accordance with the procedures in sub. (10) shall expire at the end of the PAL effective period, and the following requirements shall apply:

(a) For each emissions unit, or each group of emissions units, that existed under the PAL, the owner or operator shall comply with an allowable emission limitation under a revised permit established according to the following procedures:
1. Within the time frame specified for PAL renewals in sub. (10) (b), the major stationary source shall submit a proposed allowable emission limitation for each emissions unit or each group of emissions units, if a grouping is more appropriate as determined by the department, by distributing the PAL allowable emissions for the major stationary source among each of the emissions units that existed under the PAL. If the PAL had not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required under sub. (10) (e), the distribution shall be made as if the PAL had been adjusted.

2. Based upon the information submitted under subd. 1., the department shall determine whether and how the PAL allowable emissions will be distributed and issue a revised permit under s. NR 406.035 incorporating allowable limits for each emissions unit, or each group of emissions units, as the department determines is appropriate.

(b) The owner or operator of each emissions unit or group of emissions units shall comply with the allowable emission limitation on a 12-month rolling basis. The department may approve the use of monitoring systems, such as source testing, emission factors, etc., other than CEMS, CERMS, PEMS or CPMS to demonstrate compliance with the allowable emission limitation.

(c) Until the department issues the revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as required under par. (a) 2., the owner or operator shall continue to comply with a source-wide, multi-unit emissions cap equivalent to the level of the PAL emission limitation.

(d) Any physical change or change in the method of operation at the major stationary source shall be subject to the requirements of this chapter if the change constitutes a major modification.

(e) The owner or operator shall continue to comply with any state or federal applicable requirements, such as BACT, RACT or NSPS, that may have applied either during the PAL effective period or prior to the PAL effective period except for those emission limitations that had been established pursuant to s. NR 408.10(4), but were eliminated by the PAL in accordance with the provisions in sub. (1) (c) 3.

(10) RENEWAL OF A PAL.

(a) The department shall follow the procedures specified in sub. (5) in approving any request to renew a PAL and shall provide both the proposed PAL level and a written rationale for the proposed PAL level to the public for review and comment. During the public review, any person may propose a PAL level for the source for consideration by the department.

(b) The owner or operator shall submit a timely application to the department to request renewal of a PAL. A timely application is one that is submitted at least 6 months prior to, but not earlier than 18 months from, the date of expiration of the PAL. If the owner or operator submits a complete application to renew the PAL within this time period, the PAL shall continue to be effective until the revised permit with the renewed PAL is issued.

(c) The application to renew a PAL permit shall contain all of the following information:
1. The information required in sub. (3) (a) to (c).

2. A proposed PAL level.

3. The sum of the potential to emit of all emissions units under the PAL, with supporting documentation.

4. Any other information the owner or operator wishes the department to consider in determining the appropriate level for renewing the PAL.

(d) In determining whether and how to adjust the PAL, the department shall consider the options outlined in subds. 1. and 2. However, in no case may any adjustment fail to comply with subd. 3. The adjustment options, and requirements, are as follows:
1. If the emissions level calculated in accordance with sub. (6) is equal to or greater than 80% of the existing PAL level, the department may renew the PAL at the same level without considering the factors in subd. 2.

2. The department may set the PAL at a level that it determines to be more representative of the source's baseline actual emissions, or that it determines to be appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the source's voluntary emissions reductions, or other factors as specifically identified by the department in a written rationale.

3. Notwithstanding subds. 1. and 2., if the potential to emit of the major stationary source is less than the PAL, the department shall adjust the PAL to a level no greater than the potential to emit of the source. The department may not approve a renewed PAL level higher than the current PAL, unless the major stationary source has complied with the provisions of sub. (11).

(e) If the compliance date for a state or federal requirement that applies to the PAL source occurs during the PAL effective period, and if the department has not already adjusted for the requirement, the PAL shall be adjusted at the time of PAL renewal or operation permit renewal, whichever occurs first.

(11) INCREASING A PAL DURING THE PAL EFFECTIVE PERIOD.

(a) The department may increase a PAL level only if the owner or operator complies with all of the following provisions:
1. The owner or operator shall submit a complete application to request an increase in the PAL level for a PAL major modification. The application shall identify the emissions units contributing to the increase in emissions so as to cause the major stationary source's emissions to equal or exceed its PAL.

2. As part of this application, the owner or operator shall demonstrate that the sum of the baseline actual emissions of the small emissions units, plus the sum of the baseline actual emissions of the significant and major emissions units under the PAL assuming application of BACT-equivalent controls, plus the sum of the allowable emissions of the new or modified emissions units, exceeds the PAL. The level of control that would result from BACT-equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACT analysis at the time the application is submitted, unless the emissions unit is currently required to comply with a BACT or LAER requirement that was established within the preceding 10 years. The assumed control level for that emissions unit shall be equal to the level of BACT or LAER that currently applies to that emissions unit.

3. The owner or operator obtains a major NSR permit for all emissions units identified in subd. 1., regardless of the magnitude of the emissions increase from them. These emissions units shall comply with any emissions control requirements resulting from the major NSR process, for example, LAER and offsets, even though they have also become subject to the PAL or continue to be subject to the PAL.

(b) The PAL permit shall require that the increased PAL level shall be effective on the day any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL regulated air contaminant.

(c) The department shall calculate the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the baseline actual emissions of the significant and major emissions units, assuming application of BACT-equivalent controls as determined in accordance with par. (a) 2., plus the sum of the baseline actual emissions of the small emissions units.

(d) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requirements of sub. (5).

(12) MONITORING REQUIREMENTS FOR PALS.

(a)
1. Each PAL permit shall contain enforceable requirements for the monitoring system that accurately determines plantwide emissions of the PAL regulated air contaminant in terms of mass per unit of time. Any monitoring system authorized for use in the PAL permit shall be based on sound science and meet generally acceptable scientific procedures for data quality and manipulation. Additionally, the information generated by any authorized system shall meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL permit.

2. Except as provided for in subd. 3., the PAL monitoring system shall employ one or more of the 4 general monitoring approaches meeting the minimum requirements in par. (b) and shall be approved by the department.

3. Notwithstanding subd. 2., the owner or operator may employ an alternative monitoring approach that meets subd. 1. if approved by the department.

4. Failure to use a monitoring system that meets the requirements of this subsection renders the PAL invalid.

(b) The following are acceptable general monitoring approaches when conducted in accordance with the minimum requirements in pars. (c) to (i):
1. Mass balance calculations for activities using coatings or solvents.

2. CEMS.

3. CPMS or PEMS.

4. Emission factors.

(c) An owner or operator using mass balance calculations to monitor PAL regulated air contaminant emissions from activities using coating or solvents shall do all of the following:
1. Provide a demonstrated means of validating the published content of the PAL regulated air contaminant that is contained in or created by all materials used in or at the emissions unit.

2. Assume that the emissions unit emits all of the PAL regulated air contaminant that is contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process.

3. Where the vendor of a material or fuel, which is used in or at the emissions unit, publishes a range of pollutant content from the material, use the highest value of the range to calculate the PAL regulated air contaminant emissions unless the department determines there is site-specific data or a site-specific monitoring program to support another content within the range.

(d) An owner or operator using CEMS to monitor PAL regulated air contaminant emissions shall ensure that the CEMS does both of the following:
1. Complies with applicable performance specifications found in, Appendix B incorporated by reference in s. NR 484.04(21).

2. Samples, analyzes and records data at least every 15 minutes while the emissions unit is operating.

(e) An owner or operator using CPMS or PEMS to monitor PAL regulated air contaminant emissions shall ensure that the CPMS or PEMS does both of the following:
1. Is based on current site-specific data demonstrating a correlation between the monitored parameters and the PAL regulated air contaminant emissions across the range of operation of the emissions unit.

2. Samples, analyzes and records data at least every 15 minutes, or at another less frequent interval approved by the department, while the emissions unit is operating.

(f) An owner or operator using emission factors to monitor PAL regulated air contaminant emissions shall do all of the following:
1. Adjust all emission factors, if appropriate, to account for the degree of uncertainty or limitations in the factors' development.

2. Operate the emissions unit within the designated range of use for the emission factor, if applicable.

3. If technically practicable, for a significant emissions unit that relies on an emission factor to calculate PAL regulated air contaminant emissions, conduct validation testing to determine a site-specific emission factor within 6 months of PAL permit issuance, unless the department determines that testing is not required.

(g) A source owner or operator shall record and report maximum potential emissions without considering enforceable emission limitations or operational restrictions for an emissions unit during any period of time that there is no monitoring data, unless another method for determining emissions during the periods is specified in the PAL permit.

(h) Notwithstanding the requirements in pars. (c) to (g), where an owner or operator of an emissions unit cannot demonstrate a correlation between the monitored parameters and the PAL regulated air contaminant emissions rate at all operating points of the emissions unit, the department shall, at the time of permit issuance, do one of the following:
1. Establish default values for determining compliance with the PAL based on the highest potential emissions reasonably estimated at the operating points.

2. Determine that operation of the emissions unit during operating conditions when there is no correlation between monitored parameters and the PAL regulated air contaminant emissions is a violation of the PAL.

(i) All data used to establish the PAL regulated air contaminant level shall be re-validated through performance testing or other scientifically valid means approved by the department. The testing shall occur at least once every 5 years after the issuance of the PAL.

(13) RECORDKEEPING REQUIREMENTS.

(a) The PAL permit shall require an owner or operator to retain a copy of all records necessary to determine compliance with any requirement of the PAL permit, including a determination of each emissions unit's 12-month rolling total emissions, for 5 years from the date of the record.

(b) The PAL permit shall require an owner or operator to retain a copy of the following records, for the duration of the PAL effective period plus 5 years:
1. A copy of the PAL permit application and any applications for revisions to the PAL.

2. Each annual certification of compliance pursuant to s. NR 439.03(8) and the data relied on in certifying the compliance.

(14) REPORTING AND NOTIFICATION REQUIREMENTS. The owner or operator shall submit the following reports and information to the department:

(a) Semi-annual report. The semi-annual report shall be submitted to the department within 30 days of the end of each reporting period. This report shall contain all of the following information:
1. The name of the owner and operator and the permit number.

2. Total annual emissions, in tons/year, based on a 12-month rolling total for each month in the reporting period recorded pursuant to sub. (13) (a).

3. All data relied upon, including any quality assurance or quality control data, in calculating the monthly and annual PAL regulated air contaminant emissions.

4. A list of any emissions units modified or added to the major stationary source during the preceding 6-month period.

5. The number, duration and cause of any deviations or monitoring malfunctions other than the time associated with zero and span calibration checks, and any corrective action taken.

6. A notification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the monitoring system will be fully operational or replaced with another monitoring system, and whether the emissions unit monitored by the monitoring system continued to operate, and the calculation of the emissions of the air contaminant or the number determined by method included in the permit, as provided by sub. (12) (g).

7. A signed statement by the responsible official certifying the truth, accuracy and completeness of the information provided in the report.

(b) Deviation report. A report shall be submitted for any deviation from, or exceedance of, the PAL requirements, including periods where no monitoring is available. A report submitted pursuant to s. NR 439.03 shall satisfy this reporting requirement. The deviation reports shall be submitted within the time limits in s. NR 439.03. The reports shall contain all of the following information:
1. The name of the owner and operator and the permit number.

2. The PAL permit requirement that was deviated from or that was exceeded.

3. Emissions resulting from the deviation or the exceedance.

4. A signed statement by the responsible official certifying the truth, accuracy and completeness of the information provided in the report.

(c) Re-validation results. The results of any re-validation test or method shall be submitted within 3 months after completion of the test or method.

(15) TRANSITION REQUIREMENTS. The department may not issue a PAL permit that does not comply with the requirements of this section after July 1, 2007.

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